The Hindu Business Line : Pyramid Retail plans home delivery format for TruMart stores

Servicing customers
Pyramid Retail also plans to introduce a credit card for its shoppers to give the benefit of buying goods on credit.
The retailer is contemplating being a licensee to international brands waiting to enter the country.

Mumbai June 13 Pyramid Retail is planning to introduce a home delivery format for its TruMart stores. With intentions of graduating to an e-commerce model, the retailer is targeting 20 per cent of its total grocery and general merchandise turnover through the home delivery format.

Mr Upamanyu Bhattacharya, CEO, TruMart, told Business Line, "Direct home deliveries would be integrated into the existing retailing model. We expect to start this service in the second half of this year."

The retailer would be directly servicing its customers from its stores. Explains Mr Bhattacharya, who had earlier headed HLL's Sangam Direct, "We will ensure that the deliveries happen from the stores unlike the warehouse sourcing model adopted by Sangam Direct. In the warehousing model the costs are usually high and such operations cannot be housed on a stand-alone basis."

Servicing establishments within a radius of two km, TruMart with its supermarket format expects to compete with the local kirana stores in the area. There are also plans to introduce a credit card for its shoppers to give the benefit of buying goods on credit. The purpose is to emulate the services provided by the local kirana store, which also sells on credit.

Branding Exercise

Meanwhile, Pyramid Megastore, the department store format of Pyramid Retail is expected to undergo a new branding exercise with the help of DMA Branding and its advertising agency Saints & Warriors.

Mr Nandan Piramal, Executive Vice-Chairman, Pyramid Retail, said, "We would be re-launching the Pyramid brand with a new logo. The purpose is to give a whole new meaning to the department store brand." Focussing on having more private labels, the retailer intends ramping up its its margins through its department store format.

As Mr Piramal says, "While TruMart would add to the top line, Pyramid would contribute towards the bottomline of the company. Operating margins are relatively higher with private labels and we intend having more styles and options under the existing labels at Pyramid."

Speciality Retail

Dismissing speculation about Pyramid Retail seeking partners in the business, Mr Piramal adds, "We don't think there is a need for a partner and there is no reason why we cannot do this business ourselves."

In fact the Rs 100-crore Pyramid Retail is contemplating dabbling in speciality retail and even being a licensee to international brands waiting to enter the country.

More Stories on : Retailing | Online Marketing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page